Short sellers made Canada TD bank with $3.7B in bearish bets

Short sellers target Toronto-Dominion Bank with $3.7B in bearish bets

https://nypost.com/2023/04/05/short-sellers-target-td-bank-with-3-7b-in-bearish-bets/ 

By Thomas Barrabi  April 5, 2023 

Short sellers are betting that Canada-based lender Toronto-Dominion Bank — better known as TD — will be the next bank stock to plunge due to ongoing turmoil in the global banking sector.

Investors have wagered approximately $3.7 billion on bearing bets against shares of Toronto-Dominion, which ranks as Canada’s second-largest bank, Bloomberg reported Tuesday, citing data from analytics firm S3 Partners.

Toronto-Dominion is now the most-shorted financial intuition in the world, according to the firm’s data.

France’s BNP Paribas ranks second with just over $3 billion in short bets, following by Bank of America at roughly $2.74 billion and JPMorgan Chase at $2.6 billion.

“Short sellers have been actively shorting into a declining banking sector,” S3 Partners managing director of predictive analytics Ihor Dusaniwsky told the outlet.

Bank stocks around the world came under pressure in recent weeks after the collapses of Silicon Valley Bank and Signature Bank of New York sparked fears of spreading contagion.

Those fears escalated as turmoil engulfed Credit Suisse, which was rescued by rival UBS Group, as well as US regional banks such as First Republic, which received a $30 billion lifeline from the nation’s largest lenders.

Analysts told Bloomberg that concerns about Toronto-Dominion bank are likely related to its minority stake in Charles Schwab, which experienced a stock plunge last month at the height of the banking crisis, as well as TD’s links to the struggling Canadian housing market.

Additionally, some TD Group shareholders are urging the lender to nix its planned $13.4 billion of Tennessee-based First Horizon Bank due to the uncertain outlook for regional institutions, Reuters reported.

According to S3’s Dusaniwsky, short sellers secured a boon in March as Canada-listed shares of TD plunged by 11% — though he noted the trend could be short-lived given recent volatility in stock prices.

In the US, Toronto-Dominion does business under the name “TD Bank.”

US-listed shares are down about 9% so far this year.

賣空者押注加拿大銀行 Toronto-Dominion Bank（更廣為人知的名稱是 TD）將成為下一個因全球銀行業持續動蕩而暴跌的銀行股。

彭博社周二援引分析公司 S3 Partners 的數據報道稱，投資者已押注約 37 億美元押注加拿大第二大銀行 Toronto-Dominion 的股票。

根據該公司的數據，多倫多道明銀行現在是世界上最做空的金融機構。

法國巴黎銀行以略高於 30 億美元的空頭押注排名第二，其次是美國銀行，約為 27.4 億美元，摩根大通為 26 億美元。

“賣空者一直在積極做空銀行業，”S3 Partners 預測分析董事總經理 Ihor Dusaniwsky 告訴媒體。

矽穀銀行和紐約 Signature 銀行的倒閉引發了對蔓延蔓延的擔憂，最近幾周全球銀行股承壓。

隨著動蕩席卷瑞士信貸，後者得到了競爭對手瑞銀集團的救助，以及 First Republic 等美國地區性銀行從美國最大的銀行那裏獲得了 300 億美元的救助，這些擔憂不斷升級。

分析師告訴彭博社，對 Toronto-Dominion 銀行的擔憂可能與其在 Charles Schwab 的少數股權有關，嘉信理財上個月在銀行業危機最嚴重的時候經曆了股價暴跌，以及 TD 與陷入困境的加拿大房地產市場的聯係。

此外，據路透社報道，由於區域機構的前景不明朗，一些道明集團股東敦促該銀行取消其 134 億美元的田納西州 First Horizon Bank 計劃。

根據 S3 的 Dusaniwsky 的說法，由於 TD 在加拿大上市的股票暴跌 11%，賣空者在 3 月份獲得了利好——盡管他指出，鑒於近期股價的波動，這種趨勢可能是短暫的。

在美國，Toronto-Dominion 以“TD Bank”的名義開展業務。

今年迄今為止，在美國上市的股票下跌了約 9%。